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For the moment, just keep in mind to invest like Warren Buffet !
(just follow Warren Buffet gold Rules and you'll make less mistakes in your investments - here's his biography and his investment methods)
This page is intended to make a quick biography of the most famous and certainly the best investor XXé century, in this case Warren Buffet. It mainly aims to present the investment strategies developed by Warren Buffet and its methods so that you follow a part of it. His quote, often striking and going directly where it should be, are also a treat.
Biography - Warren Buffet-Evolution of course Berkshire Hattaway
The investment philosophy developed by Warren Buffet is based on investment value ( "value approach"), which is an approach to stock market investments developed by Benjamin Graham en 1949 d in 1949 in his book The intelligent investor
Warren Buffet has become one of the richest men of mondeen from scratch solely because of their talent investors.
The investment holding company Berkshire Hathaway which is the main shareholder has significantly outperformed its benchmark index (the S & P 500 "Standard & Poors 500" which includes the 500 largest capitalization U.S.) since 1965. The Berkshire Hattaway was quoted at $ 19 in 1965 for approximately $ 100 000 in 2008. Someone who would have placed $ 1 000 in Berskhire Hattaway in 1965 would end up today to head a capital of more than $ 2 million (an increase by 2000 and by over 100 if we correctby by an annual average inflation rate of 7% (actually $ 1000, 1965 are approximately $ 130 000 today).
The annual profitability of Berkshire is 22% over the period against 10% for the S & P 500.
Schematically, the value approach is to buy 60 such an action which is 100, ie invest in securities that have a discount relative to their real value (intrinsic value which corresponds to the update future cash flow).
We will detail more precisely the broad principles of investment value to place on the stock market effectively.
What is important in investment value is the stability of the economic model of societies and their ability to generate almost certainly a growing operating profitability in the long term. It is therefore mature companies that have demonstrated in the past their profitability and ability to pay dividends, regardless of economic cycles considered.The rules for investing as Warren Buffet:
- 1. Patience
pays: Buy and Keep.Concentrate
your portfolio on a small number of titles. Remeber these Warren Buffet
- "Buy things that you'll be perfectly happy to own, if the market shut down for 10 years."
- "You do not have reason because others agree with you. You're right because your facts are correct and that your reasoning is correct. "
- 2. Invest in companies
that you understand
never invested in Telecom / technology because it did not understand
their business: .
we took the twenty-first century hands, investing in modern businesses , as brick, carpet, insulation and paint.
- He never invested in Telecom / technology because it did not understand their business: .
- 3. Look
for companies with sustainable competitive advantages, capable of
adjusting their price inflation: Analyze the sustainability of the
franchise. Buy companies, not actions
- "The most important thing for me is to determine the importance of entry barriers around a business. What I like is of course a great castle with deep moat filled with crocodiles and piranhas"
- 4. Look for companies with leaders capable
- "If you do not know jewelry, know the jeweler."
- 5. Buy at a reasonable price
- "Our goal is to find extraordinary companies at prices ordinary and not ordinary companies at prices extraordinary";
- "Most people are interested in shares when everyone interested. . The time to buy is when nobody wants to buy . You can not buy what is popular. "
- "Be fearful when others are greedy, be greedy when others are fearful."
is useless to draw from the past.
If the past was all there is to know, librarians would be the richest individuals in the world